The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-03-30
AN IMPORTANT CASE.
A Suit Against Two Prominent Rail-
road Companies.

NEW YORK, March 29.-The complaint in
the suit of Richard A. Roberts. William A.
Jones and James Adair, against the New
York and New England railroad, the Bos-
ton, Hartford & Erie railroad, William /.
Hart, and Charles p Clark, now pending in
Kings county Supreme Court was filed to-
day. 1t shows that the plaintiff and Others
for whom they act, are and have been for
several years, holders of IL, 500 shares in the
capital stock of the Boston, Hartford & Erie
company. The suit refers to that part of
the Boston, Hartford & Erie road lying be-
tween the Fishkill and Connecticut bounda-
ry, permission to acquire which was granted.
bY the New York Legislature in 1864. The
complaint recites the facts relating to the
placing of the road in the hands of receivers
on application of George Ellis in 1870, and
goes on to declare that the suit brought by
tne latter Tor this purpose was not instituted
IN good faith, as he was really acting on be-
nall OF Frederick A. Lane president of the
Ellis professed to hold. The complaint
further declares that the object of conspira-
cy between Lane and Ellis was to enable
the former to obtain possession of the road.
John ). Eldridge, former president of the
1ss Ioaa also being one &c Of the parties to the al
the Berdell mortgage bonds issued ON the
property Of the company previous to Ellis
suit and it is claimed he had given a large
number Of these to Lane without receiving
the value for the same. The latter, it is
further said, caused Defendants Clark and
Hart to be appointed trustees of the Berdell
mortgage: The issue of the Berdell mott
gage bonds, it is said, was never properly
antnorlzed at meeting of the stockholders
OF the road, nor were further appointments
or designations of the trustees nnder tbe
same mortgage duly authorized at any time
up TO the appointment of Hart and Clark
subsequent to Ellis suit; further, that on
august 70, 1871, the receivers of the Boston,
Hartford d Erie road were discharged from
their trust upon application and the whole
property placed in the hands of Hart and
CLARK without notice to or consent from the
Donu or stockholders, and that by their mis-
management OF the road these trustees
Drought about a default in the payment of
the interest on the mortgage bonds so that
the possession of the road should pass into
their own hands, and those of their confed-
crates, and took possession of the road ac-
c4thba,ngly, ctharl ana that subsequently they and
organized themselves into the New York and
New England railroad company, which pre-
tended corporation has, and never has had
any any legal existence, and that it is claimed
mortgage bonds which never have been
accounted for by the trustees; also that
John S. Eldirdge placed 1919 of mortgage
bonds with clerk of his named Eayrs.
alleging they had been pledged for so per
cent. of their value, and that in fact Eldridge
appropriated the same to his own use, to-
gether with 68, ,594 shares of the capital stock.
which, 1t was alleged, were pledged in the
same way. Further, it is alleged that the
State OF Massachusetts accepted as part
security for the loan of $3,000,0OO of scrip
large amount of the roads bonds, which
were already appropriated to the payment of
underlying liens on the road, diverting such
ponds from their proper purpose, and that
the defendants Clark and Hart were parties
to this and all the before mentioned alleged
fraudulent proceedings. 1t is alleged
that they gave no sufficient notice
OF the meetings to the stockholders
OF the road, and that they never
rendered any account of their trusteeships.
On these grounds they claim that a foreclos-
ure OF the mortgage and the formation of the
New York and New England Company Is
null and void They ask the court to de-
clare the property of the b. II. & Erie road
IN this state redeemable by the stockholders
OF the same, fixing the necessary amount of
money payable; they also ask that Hart and !
Clark shall be called to account for their
management of the road as trustees, and for
all moneys received by them, and shall he
directed by them to make restitution; that
the New York and New England company
shall be required to render an account of the
profits of the road, and that receiver shall
be appointed of all property of the road w.
ing within this State.